Governor Ron DeSantis today signed HB 7065: Insurance Assignment Agreements. The bill addresses the abuse of insurance agreements known as assignment of benefits (AOB).
HB 7065 establishes important consumer protections for property insurance policies by setting forth requirements for the execution, validity and effect of such agreements, and creating a formula that will determine which party, if any, receives an award of attorney fees should litigation related to an assignment agreement result in a judgment. This reform bill is expected to curtail the exponential growth in AOB abuse that has contributed to rising insurance costs for Floridians.
“I thank the Florida Legislature for passing meaningful AOB reform, which has become a racket in recent years,” said Governor DeSantis. “This legislation will protect Florida consumers from predatory insurance practices.”
“This year, we advocated for Florida homeowners and passed reforms to help stop rampant lawsuit abuse across the state,” said CFO Jimmy Patronis. “I am proud Governor DeSantis continues to fight for Floridians and with the signing of this bill, we are empowering families to take back control of their insurance benefits. Ultimately, Florida consumers are the biggest winners with these new and critical protections.”
“We commend the Governor for his leadership in signing the recently passed AOB legislation and look forward to the relief it will bring to Florida’s insurance consumers,” said Florida Insurance Commissioner David Altmaier.
“I would like to thank Governor DeSantis for recognizing the tremendous abuse that has occurred with assignment of benefits,” said Senator Doug Broxson. “I appreciate his leadership, along with President Galvano, in passing this much needed reform for our constituents.”
“After years of abuse by a few bad actors, Florida has finally passed a comprehensive bipartisan AOB reform bill that will help protect Floridians from skyrocketing insurance rates,” said Representative Bob Rommel.